MONGOLBANK'S GOVERNOR WARNS ABOUT DANGERS OF CRYPTOCURRENCIES

Ulaanbaatar /MONTSAME/ President of Central Bank of Mongolia N.Bayartsaikhan released a statement through Central Bank’s website. “I decided to release the following statement after a careful evaluation of recent information. The fact that many people are purchasing cryptocurrencies using salary, pension, collateral based loans is honestly worrying. Cryptocurrency is a decentralized, independent, electronic form of payment. First and foremost, Mongolbank does not recognize any kind of cryptocurrency as money. Cryptocurrency can not be considered a legal means of payment. Only Central banks hold the right to print the national bank note. The national currency which is legally recognized as a payment tool by Central Bank of Mongolia is tugrik. Central Bank has designated a working group to investigate risks of cryptocurrencies. Based on the research, we warn against the purchase of blockchain-based currencies as a form of investment. It is my responsibility to caution our citizens of potential risks. My advice is to exercise extreme caution and to carefully consider risks related to purchasing unregulated products such as cryptocurrencies. As the saying goes, "Measure seven times, Cut once". I advise you to invest in low-risk ventures that you know well. If governments of other countries begin to tighten their regulations on usage of cryptocurrencies, there is a risk that its prices will plummet. The reason is if it is proven that transactions related to tax evasion, money laundering, terrorism financing are taking place using cryptocurrencies, there is a high chance that they would be banned. Mongolbank has previously expressed its stance on such matters.”